Why the VIX Lies (And How Debit Spreads Keep You Sane)
Let’s talk about something that throws a lot of traders off course: volatility.
Specifically, the VIX.
The VIX is supposed to be the “fear gauge,” right? But lately, it’s been acting like a drama queen.
We had a minor pullback in the S&P — less than 1% — and the VIX jumped double digits.
That kind of reaction looks scary.
But it’s not always signaling true danger.
Sometimes, the VIX is just reacting to headline risk or short-term jitters.
And that’s where a lot of traders make bad decisions — getting shaken out of good positions or freezing on entries altogether.
So let me tell you how I handle it…
I ignore the noise — and lean on structure.
Instead of trying to outguess the VIX or the next news cycle, I focus on building trades that can absorb randomness.
And the tool I use to do that is the humble debit spread.
Now, I know what some people are thinking…
“Aren’t credit spreads better for income?”
Here’s the truth:
They can be. But they also come with more headaches.
Assignment risk. Slippage. And a lot more drama around expiration.
Debit spreads, on the other hand, give you a clean way to define your risk — and know exactly what you’re getting into.
You’re not guessing where the stock will be at 4pm on Friday.
You’re building in a buffer from the start… and setting yourself up to win even if the stock chops around for days.
Take the Income Machine.
It only finds debit call spreads. Why?
Because they give you:
✅ Defined risk
✅ Clear upside
✅ And a way to profit — even if the stock drops a few percent
The key is the cushion.
You’re not buying calls at the money and praying for a breakout.
You’re buying a call below the current price and selling one slightly above it — so as long as the stock finishes anywhere in that range, you win.
That’s how you take all this “volatility” and turn it into background noise.
Let the VIX scream.
Let the headlines roll in.
You’re building trades with structure — not stress.
And the best part?
You don’t need to babysit them.
The Income Machine calculates your max profit and risk right up front.
You can even set a target to exit early and lock in gains before expiration.
So if the market feels shaky…
Don’t ditch your system.
Just make sure your system is built to handle the shake.
That’s what debit spreads do best.
And that’s why I stick with them — no matter what the VIX says.
— Nate Tucci
P.S. See setups like this and much more every weekday at 10am ET in the Opening Playbook. Don’t miss it!
